The government stated yesterday that they are working to allocate an additional USD 100 million to the national reserve in order to keep Maldives safe from economic pitfalls that have come about caused by the war in the Middle East.
A special committee that is working to solve the difficulties faced by Maldivians due to the war convened at the President's Office yesterday evening for a press conference, where a journalist's question to Finance Minister Moosa Zameer bore the answer that they are taking important steps to ensure the reserve is not fully drained.
Due to the war, the price of fuel has gone up and the number of tourists to Maldives have gone down, resulting in losses to state revenue. This will increase national reserve expenditure, with an upcoming USD 500 million sukuk payment to be made by the Maldivian state as well.
According to President Dr. Mohamed Muizzu last week, the sukuk payment will be made next month with no trouble.
As per Zameer, he is closely working with and holding discussions with Maldives Monetary Authority's (MMA) Governor Ahmed Munawar to keep the national reserve from depleting completely.
"We are closely working with the Governor of the MMA to ensure the reserve can be maintained at an optimal level. With the increase in fuel prices and losses in revenue, we are taking steps to hold back the impending impact," said Zameer.
"One of the steps we are taking is to allocate an additional USD 100 million for the reserve. We came to an agreement yesterday with two international multilateral agencies."
Zameer went on to say that it is a facility to finance the increase in fuel prices.
He stated that they sent a letter to the President yesterday as the required final permission.
However, the minister did not divulge the facility's interest rate nor its duration.
Zameer said that the government will work to lower expenditure with foreign currency and state expenses as well.
The minister did not give any details regarding the matter.
Zameer continued, stating that the USD 500 million sukuk payment will be made as arranged and with no changes.
"We have planned our work as per the President's Presidential Address. There will be no further changes. Even if we have to pay the sukuk tomorrow, we have the funds in the reserve to pay the sukuk at this time," said the minister.
"In the future however, as my son asked me, 'should I be worried'? I said that worry should be present if a war begins. But that does not mean your life should come to a standstill. The committee is working to mitigate that worry."
